Pell Grant and Cal Grant

If I am awarded both a Pell Grant and a state Cal Grant, can I accept both and keep the extra money for personal use? If I accept one and not the other, can I apply the other towards graduate school in the future?

You can accept both. You cannot defer any amounts toward grad school, but you can keep it in your bank account and use it for grad school if you want to.

I heard that colleges will hold the money and only give you the extra funds if you provide proof that you need it for school-related spending. Is this true? Thank you.

@twoinanddone ^^

No, a grant is a “grant”. How would they be able to tell what your bank is doing with your money? They don’t know if you’re holding it for second semester fees for labs, school fees, etc.

Colleges don’t check on what you spend the money.

However, Cal Grants only cover tuition. What are you going to use to pay for text books, travel, insurance, food, etc?

Will you be commuting? If so, you’ll have lots of transportation costs.

@mom2collegekids Yes, I would consider anything outside tuition and school supplies (mainly textbooks) as personal use. So, the funds will be sent directly to me and not the school?

No, the funds will be sent to the school. The school will deduct all their billed items (tuition, fees, room and board) and if there is anything left, that will be given to you. It sometimes takes a few weeks to get that payment. Also, it will only be for the first term, not the amount for the entire year.

If you take out a student loan, that will be handled the same way, through the school and the rest to you.

@twoinanddone Got it. Thank you!